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Should America be Run by Trader Joe's?

  • Writer: Dan Krug
    Dan Krug
  • May 3
  • 1 min read



Many of you might recognize the title of this post from a recent episode of Freakonomics Radio. As a devoted listener, I found their discussion on Trader Joe’s business model particularly intriguing. As someone who runs a business focused on helping organizations integrate technology, it's refreshing to see case studies where strategy is built around the capacity of the team. Trader Joe’s stands out with its remarkably low-tech approach. They have zero presence on social media, no customer metrics, and their stores are designed to be low-tech and heavily staffed with human beings. There are no self-checkouts; instead, they have extra personnel at the checkouts to engage with customers. Shelves are stocked during the day, allowing employees to interact more with shoppers. This low-tech strategy has led Trader Joe’s to achieve the highest revenue per square foot of any grocer in the US, doubling the revenue of the second-place grocer. It's not even close. Trader Joe’s is the only grocery store I know where customers are truly fanatical about shopping there. They have cultivated a strong, loyal, and enthusiastic following. Trader Joe’s has invested in the capacity of their people to deliver a unique strategy. While I'm not suggesting you abandon technology efforts, I do encourage you to consider how technology integrations can enhance your team's capacity. Technology initiatives often begin with the noble intention of reinventing work processes to create more value, but they rarely end that way. However, it doesn't have to be that way! Change Intelligently!!

 
 
 

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